McDonald’s and 19 Other Franchises That Could Make You Rich

If you dream of opening your own business, join the crowd. In the midst of the coronavirus pandemic, Americans are filing business applications at the fastest rate in a decade, with 3.2 million applications filed in 2020, up from 2.7 million in 2019.

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If you’re like many Americans, the fear of failure may be one of your biggest obstacles if you’re considering starting your own business. And who could blame you for being afraid? About half of small businesses fail within five years of launching, and about two-thirds fail within 10 years, according to the Bureau of Labor Statistics.

Given the failure rate of new businesses, it’s not surprising that many aspiring business owners opt to become a franchisee rather than launch their own operation. If you buy a franchise, you get the benefit of operating an established brand with a proven system. But – as the Federal Trade Commission cautions – buying a franchise is no guarantee of success.

That’s why it’s important to consider franchise options carefully before investing in one. With costs varying widely, you want to ensure you get the most bang for your buck. To help, GOBankingRates analyzed Franchise Direct’s top 100 franchises of 2021 to identify those most likely to be lucrative based on their track records, startup costs and ongoing fees. They’re ranked from least to most likely to be financially successful.

If you’re thinking about buying a franchise, find out which ones are more likely to make you rich.

Last updated: April 6, 2021

Taco Bell

• Average franchise fee: $35,000
• Average initial investment minus franchise fee: $1,774,850
• Royalty fee: 5.50%
• Advertising fee: 4.25%

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McAlister's Deli

• Average franchise fee: $25,000
• Average initial investment minus franchise fee: $1,221,100
• Royalty fee: 5.00%
• Advertising fee: 3.13%

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Mountain Mike's Pizza

• Average franchise fee: $22,500
• Average initial investment minus franchise fee: $378,270
• Royalty fee: 5.00%
• Advertising fee: 3.00%

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Home Instead

• Average franchise fee: $55,000
• Average initial investment minus franchise fee: $61,905
• Royalty fee: 5.00%
• Advertising fee: 2.00%

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Jiffy Lube

• Average franchise fee: $17,500
• Average initial investment minus franchise fee: $297,325
• Royalty fee: 4.00%
• Advertising fee: 9.00%

Burger King

• Average franchise fee: $32,500
• Average initial investment minus franchise fee: $1,833,350
• Royalty fee: 4.50%
• Advertising fee: 4.00%

Pizza Hut

• Average franchise fee: $25,000
• Average initial investment minus franchise fee: $1,190,250
• Royalty fee: 6.00%
• Advertising fee: 4.75%

Keller Williams Realty

• Average franchise fee: $35,000
• Average initial investment minus franchise fee: $225,471
• Royalty fee: 6.00%
• Advertising fee: 1.00%

Smoothie King

• Average franchise fee: $27,500
• Average initial investment minus franchise fee: $526,518
• Royalty fee: 6.00%
• Advertising fee: 5.00%

KFC

• Average franchise fee: $20,000
• Average initial investment minus franchise fee: $2,087,050
• Royalty fee: 4.50%
• Advertising fee: 4.50%

Great Clips

• Average franchise fee: $20,000
• Average initial investment minus franchise fee: $194,650
• Royalty fee: 6.00%
• Advertising fee: 5.00%

Subway

• Average franchise fee: $15,000
• Average initial investment minus franchise fee: $206,225
• Royalty fee: 8.00%
• Advertising fee: 4.50%

Baskin-Robbins

• Average franchise fee: $18,750
• Average initial investment minus franchise fee: $322,641
• Royalty fee: 5.90%
• Advertising fee: 5.00%

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McDonald's

• Average franchise fee: $22,500
• Average initial investment minus franchise fee: $1,363,000
• Royalty fee: 4.00%
• Advertising fee: 4.00%

Circle K

• Average franchise fee: $12,500
• Average initial investment minus franchise fee: $1,258,445
• Royalty fee: 5.25%
• Advertising fee: 1.00%

CARSTAR

• Average franchise fee: $10,000
• Average initial investment minus franchise fee: $541,250
• Royalty fee: 5.50%
• Advertising fee: 1.00%

Jersey Mike's

• Average franchise fee: $18,500
• Average initial investment minus franchise fee: $468,023
• Royalty fee: 6.50%
• Advertising fee: 1.00%

Papa John's

• Average franchise fee: $12,500
• Average initial investment minus franchise fee: $422,960
• Royalty fee: 5.00%
• Advertising fee: 3.00%

Century 21

• Average franchise fee: $12,500
• Average initial investment minus franchise fee: $268,775
• Royalty fee: 6.00%
• Advertising fee: 2.00%

Dominos

• Average franchise fee: $5,000
• Average initial investment minus franchise fee: $336,725
• Royalty fee: 5.50%
• Advertising fee: 4.00%

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Cameron Huddleston contributed to the reporting for this article. 

Methodology: GOBankingRates looked at Franchise Direct’s Top 100 Franchises of 2021 across five factors to determine the top 20 franchises that could make you rich. The factors were as follows and all sourced from Franchise Direct: (1) Overall rank; (2) average of the low and high end initial franchise fees; (3) average of the low and high total initial investment minus the average franchise fee; (4) the percent of gross sales that will be deducted for royalty or service fees; and (5) the percent of gross sales that will be deducted for advertising or marketing fees. To be considered for this list the company offering the franchise had to be headquartered in the United States and have all the data for the factors above readily available. All factors were scored and combined, with the lowest score being best. In the final scoring, factor (1) was weighted 0.75 times as heavily as the other factors. All data was compiled on and up to date as of March 11, 2021.

Photo note: Some of the images in this article are representational and may not depict the company named. 

About the Author

John Csiszar

After earning a B.A. in English with a Specialization in Business from UCLA, John Csiszar worked in the financial services industry as a registered representative for 18 years. Along the way, Csiszar earned both Certified Financial Planner and Registered Investment Adviser designations, in addition to being licensed as a life agent, while working for both a major Wall Street wirehouse and for his own investment advisory firm. During his time as an advisor, Csiszar managed over $100 million in client assets while providing individualized investment plans for hundreds of clients.

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